Is Not Owning a Home a Millennial Mistake?

We have seen a lot of trends and changes in the real estate market in the past decade. From tiny houses to completely mobile lifestyles, millennials have proven to be nontraditional in terms of buying homes and investing their money in real estate. We have to ask however, if millennials are making a mistake by not putting their money into the market.

As a long-term investment, real estate has proven itself to be one of the best financial decisions you can make. In terms of wealth-building, owning a home is considered to be a milestone, and homeowners are statistically 38 times wealthier than renters in this country.

The math behind it is pretty simple. No matter where or how you live, you are going to have to pay for your space. Over a period of 30 years (at $1,500 a month), renters can sink upwards of $500,000 into their homes, money that they could have invested into a home, converted into equity, and sold off when the time is right.

A 2014 survey by Fannie Mae suggested that millennials, while more pessimistic about buying than older generations do consider owning a home more financially sensible than renting. Other reasons for this include lifestyle, living space, future flexibility, and security. 49% of millennials surveyed said buying a home would be their next big move.

According to the survey, the biggest hurdle millennials face about owning a home has to do with getting approval for a mortgage, although in this day and age, there are apps for that, and online resources that make it easier than ever.

So the moral of the story is that real estate remains a strong investment for anyone, especially millennials, so even though the way we buy homes is changing, the fact remains that it is a solid pathway to increase your wealth and help build your financial future.